What should I know about shopping abroad?

• In many countries of the world, negotiation on the price of an item is appropriate and often expected.

• Satisfaction guaranteed is much more widely practiced in the United States. Make sure you are familiar with their return and exchange policies.

• Many countries do not enforce copyright laws, the logo you see may have nothing to do with the company it represents to you. Check to see if the item is a fake.

• Some items for sale may need a special license for export. This is especially true for antiques, works of art or other items of cultural significance.

• Taxes can make up an even larger percentage of the purchase price than you will find in the United States.

• Duty free may only mean the items are free from duty where they are sold. U.S. Customs have their own guidelines for taxation when you return.

Shopping abroad, what does Caveat Emptor mean?

It means the buyer beware. Remember that merchants know that putting up a duty free sign often means bargain to many. There are some great buys to be had, but make sure your purchases are good values. Stick with brand names you know and make sure those brand names are spelled right on the product. In other words, make sure it’s not a fake. Also, duty free may just mean it is duty free where you are buying it. U.S. Customs have their own guidelines for taxation when you return.

What is a VAT tax?

VAT stands for Value Added Tax, and it is a form of sales tax that is assessed in many countries and is especially common in Europe. In many cases, this tax is a large percentage of the purchase price and sometimes can be refunded to foreigners who are exporting the item outside of the country of origin.

How can I avoid paying the VAT tax?

• You can’t usually avoid paying it up front, but you can often have the tax refunded to you after you leave the country. The item must be taken out of the country and cannot be consumed inside the country if you are to receive a refund. Therefore, you will probably have to pay the VAT tax on some items and be able to get a refund on the items you are bringing home as souvenirs. Read the following suggestions for help on getting some of your VAT tax payments back.

• Check with each country you are visiting since refund procedures and policies can differ.

• Find out where the refund forms are available, you may be able to request them from the country’s embassy, tourist office, customs office or airport.

• Take your passport with you when you go shopping to verify your foreign status to merchants.

• Arrive early at the Airport to allow for plenty of time for the VAT paperwork to be completed.

• Don’t check luggage with items that may need to be inspected for a VAT refund.

• Pack your luggage so the items you want to be inspected are easily accessible.

• Make sure you receive the proper inspection and stamp for your paperwork from the customs officer before you leave the country.

Where can I find information, from the countries themselves, about regulations concerning purchases made in their country?

Go To:  Embassy Links

This page contains links to many foreign countries’ Embassies and Consulate Offices located in the United States. Each Embassy’s web site is different, but they all contain contact information and other helpful information for anyone planning on visiting their country.

What are some helpful hints for dealing with Customs Officials?

• If you are taking foreign-made or expensive items with you on your trip, register them with U.S. Customs before you leave. Otherwise, if you can’t prove you already owned them, you may be charged a tax on those items when you return. You can register items with Customs by their serial numbers or use itemized receipts, detailed insurance policy information or jeweler’s appraisals.

• Know the amounts of arrival and departure taxes you’ll be responsible for paying at Customs.

• Leave plenty of time for the Customs process.

• Know the restrictions on carrying foods, plants and animals across the border.

• Log your purchases and keep the receipts of your purchases made abroad.

• Pack so it is easy to inspect your items.

• Immediately follow the requests for cooperation from Customs Officials. Customs Officials generally have special powers to guard a country’s borders and can enforce strict penalties if you refuse to cooperate.

How can I get help in understanding all the U.S. Customs Service regulations?

www.customs.ustreas.gov

The U.S. Customs Service homepage.

http://www.cbp.gov/

The U.S. Treasury Department Customs Service’s Traveler Information, Know Before You Go web page. This site contains information on U.S. Custom’s declarations, duty free exemptions, prohibited and restricted articles and the procedures for shipping items back to the U.S.

www.customs.ustreas.gov/travel/travel.htm

The U.S. Customs Service Traveler Information web page. This site contains links to the services the U.S. Customs Service provides to travelers; some of these web sites are also individually linked to this web page for your convenience.